Mapped: the areas where buy-to-let landlords need licences in 2021

More than 50 councils in England now operate licensing schemes for buy-to-let landlords, but do you need a permit to let a property in your area?

Landlord licensing has been a hot topic over the last few years, with a growing number of local authorities demanding landlords sign up to codes of conduct and also the government launching a review into how effective licences really are.

Here, we explain which councils are operating schemes, and provide advice on whether new launches will go ahead during the coronavirus crisis.

Types of landlord licensing scheme

Landlord licences fall into three categories, as follows:

• Mandatory licensing: if you’re letting out a sizable House in Multiple Occupation (HMO) in England or Wales, you’ll need to have a licence to do so. HMO licences are required for any property let to five or more people from more than one household who share facilities (such as bathrooms and kitchens).
• Additional licensing: additional licensing will also apply to individuals letting out HMOs. These licences are introduced by individual councils if they’re concerned HMOs aren’t being properly managed or believe that the mandatory licensing doesn’t go far enough.
• Selective licensing: councils can require some or all landlords in their area to obtain a licence to allow property. Local authorities can set their very own requirements, which might include a ‘fit and proper person’ test or an agreement to register to a charter or code of conduct.

Mapped: which councils operate licensing schemes?

The National Residential Landlords Association (NRLA) has shared new data with Which? showing the councils in England that operate selective or additional licensing schemes.

The NRLA submitted freedom of knowledge requests to councils across England between November 2021 and February 2021.

It received a lot more than 200 responses, with 55 councils confirming they’re operating additional or selective schemes, or are in the process of launching one.

Hover over a place on the interactive map below to discover whether or not this operates additional licensing, selective licensing, or both.

Licensing schemes in London

London is definitely the most typical place for landlord licensing, with 22 boroughs operating a scheme, as shown below.

Are licensing schemes here to stay?

Last year, the federal government conducted an evaluation into selective licensing.

It concluded schemes were effective ‘when implemented properly’, and said a ‘national registration scheme’ for landlords should be thought about to supplement selective licensing.

Landlord licensing schemes have suffered their great amount of bad press previously couple of years.

In November 2021, we reported that Nottingham City Council had rejected 3,536 applications for licences due to ‘paperwork errors’, a figure well in excess of the two,457 licences it had granted at the time.

And last October, research by Safe Agent and London Property Licensing claimed as many as 130,000 rented properties working in london weren’t currently compliant with licensing rules.

Will licences be enforced during the coronavirus crisis?

The government provides guidance to councils on launching and enforcing licensing schemes throughout the coronavirus outbreak.

It says that councils should ‘adopt a pragmatic approach’ on licensing enforcement and consider pausing the introduction of any non-mandatory licensing schemes to release resources for more pressing concerns.

Coventry pushes ahead with licensing scheme

The NRLA told Which? it has written to Coventry Council over its intends to generate a licensing scheme on 4 May, so it describes as ‘irresponsible’.

It says: ‘Whenever a licensing scheme is introduced, landlords need to go into properties to check on they satisfy the licensing obligation and could need to carry out non-essential works. This exposes them and the tenants to an enhanced risk of contagion.

‘Several local authorities including Luton and Newcastle did what's right and paused the development of new licensing schemes.’

In response, Coventry Council said its scheme would still proceed, however it would ‘extend the date for compliance for any further six months’ and landlords are only asked for an initial stage payment of lb450.

Landlord licensing in Scotland, Wales and Northern Ireland

In Scotland, all landlords must sign up to a landlord registration system and obtain a licence, which should be renewed every 3 years. Fees vary between councils.

Wales has operated a similar system since 2021. All Welsh landlords must register with Rent Smart Wales (Rhentu Doeth Cumru).

Landlords who use agents to let and manage their properties need to pay lb33.50 to register for a period of five years. People who let and manage their own rentals also need a licence, which has a fee of lb144 (if bought online, lb186 for paper applications). This also can last for five years.

Northern Ireland operates its own landlord registration scheme and it has a central register of non-public landlords. It is lb70 (online) or lb80 (paper) to apply, and licences are valid for 3 years.